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The European Union have announced plans to mirror the United States' steel tariffs, increasing to double levies on imports to fifty percent in a decision condemned as "an existential threat" to the industry in Britain.

Unprecedented Crisis for British Steel Industry

Given that 80% of UK steel shipments destined for the EU, this change represents the UK steel industry's biggest ever crisis, according to the lobby group speaking for the sector.

European Commission Measures and Rules

Through its proposal presented to the EU legislature on Tuesday, the EU executive also proposed slashing the current allowance for duty-free imports and obliging foreign suppliers to disclose where the steel was melted and poured to prevent Chinese producers sneaking products in through third nations.

The European steel industry stood at the brink of failure – we are protecting it so that investments can be made, reduce emissions, and regain competitiveness.

Overhaul of Existing System

The proposals are designed to supersede a import framework that has been in operation for the last seven years and which is set to expire in 2026 and is now seen as outdated. Inaction could have been "catastrophic" for the industry, one EU official said.

Industry Reaction and Concerns

Nevertheless, Gareth Stace, head of the trade association British Steel, said Brussels doubling its tariffs would create "the biggest crisis the UK steel industry has ever faced".

There were calls for the government to "acknowledge the urgent need to put in place its own measures to protect" the British steel sector – which is still reeling from a 25% duty from Trump earlier this year – from the risk of millions of tonnes of global steel redirected from US and European markets.

This surge in foreign steel "might prove terminal for many of our remaining steel companies.

Union and Political Calls

Union leaders, assistant general secretary at steelworkers' union Community, said the proposed changes posed "an existential threat" to British steel production.

Unions and industry leaders urged the UK government to start negotiations urgently with the EU on country-specific duty-free quotas, pointing out that the United Kingdom was now the EU's No 1 export market.

Industry Background

Industry leaders in the European Union have repeatedly cautioned for months that the European steel sector faces being "eliminated" through the new 50% tariffs on exports to the US combined with rising energy prices and cheap Chinese competition.

Steel on in both the UK and EU is considered a essential sector, providing basic materials in products ranging from building frameworks, wind turbines and transport infrastructure to household appliances and kitchenware.

Implementation and Next Steps

These proposals must be agreed by EU nations and the EU legislature, with the EU executive head urging national governments and European parliament members to move quickly in backing the proposal.

Should approval be granted, the EU will reduce its existing tariff-free allowance by 47% to 18.3 million tons a year, a volume previously recorded in 2013. It will impose a 50% duty on foreign steel beyond the quota and oblige countries shipping to the bloc to state the production origin to prevent circumvention of the measures.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or tariffs because of their strong economic ties in the European Economic Area, the EU has confirmed.

Alongside the proposal, the EU is seeking a "metals alliance" with the US to ringfence their respective economies from overcapacity.

EU needs to act now, and firmly, prior to operations cease in large parts of the EU steel industry and its supply networks.